Are the top 50 global banks, except for Bank of China, all crypto-friendly?

According to CoinGecko's report, among the 50 largest global banks by assets under management in 2023, 37 banks, or 74%, facilitate cryptocurrency trading by connecting with regulated cryptocurrency exchanges such as Binance and Coinbase, enabling seamless transfer of funds between bank accounts. However, none of them directly support retail cryptocurrency trading on their own platforms.

The ranking of banks in this survey is based on the April 2023 Global Top 100 Banks report released by S&P 500. The total assets managed by the top 50 banks globally in 2023 amount to $89.37 trillion. The list is dominated by the two largest economies, the United States and China, with 19 banks making it to the top 50. The top 4 banks in the ranking are all Chinese banks, managing assets worth $19.87 trillion, accounting for over 20% of the total assets.

Chinese Banks Listed as Crypto Unfriendly

All 13 banks that do not allow connections are located in China, a country known for its stance against cryptocurrencies. In 2013, the People's Bank of China prohibited financial institutions from engaging in virtual currency transactions, and in 2021, it banned all forms of cryptocurrency trading and mining.

However, the Chinese government is actively promoting the digital version of the renminbi, known as e-CNY. Besides being used in Hong Kong and mainland China, there are plans to promote it in trade along the Belt and Road Initiative. China is one of the few countries at the forefront of central bank digital currency (CBDC) with e-CNY. However, this strong support for centrally controlled e-CNY has further discouraged the development of cryptocurrencies.

On the other hand, Hong Kong appears to be more open to cryptocurrency trading. The regulation of cryptocurrencies in Hong Kong has been in effect since June 1st, and Zhongan Bank of Hong Kong has started offering "cryptocurrency-to-fiat" services. Several exchanges are also actively applying for cryptocurrency asset trading platform licenses in Hong Kong.

Institutional Clients Remain the Focus

Banks continue to primarily serve institutional clients. Institutional clients can now directly access cryptocurrencies through several banks:

• JPMorgan Chase introduced its own Onyx blockchain network and launched the JPM Coin, a stablecoin that provides payment options for corporate clients in USD and EUR.
• Goldman Sachs established a cryptocurrency trading desk in 2021 as part of its Global Currencies and Emerging Markets division. This allows them to engage in Bitcoin futures and non-deliverable forward transactions. Goldman Sachs also launched its digital asset platform, GS DAP, this year and collaborated with the Hong Kong Monetary Authority to issue HKD 800 million in tokenized green bonds.
• Société Générale, the French bank, launched the EURCV stablecoin on Ethereum in April this year, making it the first stablecoin on a public blockchain. Its subsidiary, SG Forge, recently obtained the first DASP license in France as a digital asset service provider.

Collaboration with Cryptocurrency Custodians

Banks are moving towards comprehensive retail cryptocurrency trading by establishing partnerships with cryptocurrency custodian companies. Swiss digital asset custody company Metaco is one of the companies that has signed agreements with several top 50 banks, and Ripple acquired Metaco for $250 million in May this year.

Metaco's technology allows financial institutions to store and manage digital assets. Its clients include Citigroup, BNP Paribas, and Société Générale's digital asset departments.

Are Banks Crypto-Friendly Except in China?

According to the report, the criteria for assessing whether a bank is crypto-friendly include:

• Offering cryptocurrency trading or onboarding services within the bank's local platform
• Ability to link the bank's current accounts to regulated cryptocurrency exchanges

However, due to regulatory constraints, these major banks are unwilling to implement native cryptocurrency trading. Therefore, their crypto-friendliness is mostly limited to providing services for deposits and withdrawals from exchanges, such as using bank debit cards for transactions. The statistics show that, except for the 13 banks in China, the rest offer deposit and withdrawal services.